Gural family’s GFP Real Estate, Northwind Group and TPG Real Estate Partners borrow $344M from Square Mile Capital for property in Financial District

The Gural family’s GFP Real Estate, Northwind Group and TPG Real Estate Partners through the entities 7 Hanover Fee Owner Co. LLC and 100 Pearl LH LLC as borrowers signed a loan agreement with lender Square Mile Capital through the entity SM Finance II LLC valued at $344 million for the office tower 7 Hanover Square in Financial District. The deal closed on October 3, 2019 and was recorded on October 17, 2019.
The property contains a total of approximately 905,000 square feet of built space.

The total debt package is $430 million, according to The Real Deal. The recorded debt is $344 million. The last time the property sold was October 3, 2019, for more than $300 million. Cushman & Wakefield’s Gideon Gil, Alex Hernandez, Thomas Sullivan and Zach Kraft arranged the financing. The debt is secured by both the landlord and tenant entities which GFP, Northwind and TPG control.

The Gural family’s GFP Real Estate, Northwind Group and TPG Real Estate Partners created a fee ownership landlord entity and a ground lease tenant entity at the building at the same time as the loan and the property acquisition, on October 3. The legal entities then executed an approximately 30-year lease between the landlord and the tenant entity.

Over the past five years, there have been 7 NYC Department of Buildings permit applications filed for this parcel valued at more than $20,000. Of those there was one major renovation application including a certificate of occupancy change (A1) filed with a total estimated value of $1,250,000. There were 6 renovation/alteration projects (A2) applied for with a total estimated value of $607,667.
Direct link to Acris document. link
Direct link to the city’s interactive property map, ZOLA. link
A recent story on the property. link.

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